There are 5 easy ways you can establish your credit, especially if you are starting from scratch.
Apply for a Secured Credit Card
A secured card is backed by your own cash deposit, usually the same as your credit limit on the card. You can use the credit card like any other one until you’ve established your own credit.
Sign Up for Credit Monitoring
Stay on top of any irregularities or unexpected dings on your credit report by using a credit monitoring service that will alert you of any problems.
Report Your Rent Payments to a Credit Agency
Your lease payments can help you establish credit if you report them. There are several rent-reporting agencies that can assist you such as Rental Kharma and RentTrack. This is also a great way to set up good credit if your long term plan is for homeownership.
Make Timely Payments
If you are someone who is overwhelmed with managing bills, set up automatic payments so that you’ll never be late paying your bills.
Become an Authorized User for Someone’s Credit Card
A family member or partner may be willing to add you as an authorized user on his or her card. You’ll be able to access and build credit, but will not be legally obligated for the debts. You’ll need to verify that the card used will report authorized user activity to credit bureaus before establishing this type of credit.